Bisichi Mining

What do you think?


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Bischi = black, Anglo and Pacific = Red, ATH Resources (new float)= Blue.


Thanks to Goldfinger for flagging it up.

Up 18p wow, must have been my chart on the Faraj thread on our competitors site that as done it.

cheers GF.

THIS IS moving like some info got out,have topped up 3 times in 5 mins!! pe still tiny!!

Up again and I thinking we were in for a bout of profit taking.

cheers GF.

Ended the day up 3p, excelent.

cheers GF.

Is there some good news in the pipeline! do you think??

Not sure but I here from another site that an online tipping site tipped it Friday, which one I dont know.

cheers GF.

Something is wrong,

Sudden 12.74% drop!

Now down 9% but cant yet find a reason.

cheers GF.

Looks like a big sell off on all small caps. Just taken a look at my 30plus watch list and nearlly all down.

Makes it worse for Bisi being a high Beta, iliquid stock.

No going to panic and sell, will stay put.

Can go up quickly these so see no real problems.

cheers GF.

Don't like it,

I'm out!

Buyers coming in now and picking them up on the cheap.

17 thousand buys V 21 thousand sells.

Looks a good entry point for those not already in.

cheers GF.

Buys now 27k V 21k sells.

Not company specific, its just a short term market correction for small caps.

Often throws up buying opportunities.

cheers GF.

Price moving further north now, and buyes coming in and getting them very cheaply.

cheers GF.

Held up well later on in the day, coking coal prices now in the $60s per tonne.

Stick with this one or even buy it at this reduced price.

cheers GF.

Riding back up again, now over 2 quid again.

cheers GF.

Lifted off another board, looks like the tip from late last week..........

Soaring prices and black empowerment help Bisichi succeed

Two key factors lie behind the startling recent success of Bisichi. First is the dramatically rising coal price which has doubled, from $30 to $60 a tonne just since last April. This in turn reflects soaring demand in China, which has gone from being an exporter of coal to a net importer sucking in coal from Asia and Africa.

The second factor is black empowerment. Bisichi went the whole hog on black empowerment by selling a 37.5 per cent stake in its Black Wattle Colliery to a black-controlled company, which has then been instrumental in opening many doors to the company.

In particular black empowerment status has enabled Bisichi to become an exporter of coal through Richards Bay Coal Terminal. The company says that the long-term export contract it has been able to negotiate locks in a significant profit margin.

It is complicated to calculate exactly what effect a rising coal price has on Bisichi because of the mix of production between exports, coal sold into the local market and low phosphorous coal sold at a premium to furnaces producing stainless steel. At the half-year stage for the first six months of calendar 2004 the group said that average selling prices for coal were 21 per cent higher than in the second half of 2003. Since then the coal price has risen further.

Investors were initially disappointed when the interims showed profits falling from 746,000 to 726,000 with operating profits down from 1.00m to 883,000. However the company says this was a very good performance because it came despite needing to move all three mining sections at the Black Wattle Colliery during the period to exploit new reserves.

cheers GF.

Some interesting ratios on Bisi , just to keep us up to date.........

Investment Ratios
(Market value analysis) at previous day's close
PQ Ratio Premium Silver Data
PE Ratio 20.35
Tobin's Q Ratio Premium Silver Data
Tobin's Q Ratio (excl. intangibles) Premium Silver Data
Dividend Yield 0.93 %
Market-to-Book Ratio 1.82
Price-to-Pre-Tax Profit PS Premium Silver Data
Price-to-Retained Profit PS 25.07
Price-to-Cash Flow PS 9.35
Price-to-Sales PS 2.32
Price-to-Net Tangible Asset Value PS 1.85
Price-to-Cash PS 37.30

So with a P/E of 20 it cant be said to be presently cheap but please bear in mind thats the historic P/E. I feel the forward P/E is in the region of 13/14 based on the figures that it made just over 1 million after tax last year and this year we are looking at massive increases in coking coal prices, new machinery , 3 new mine heads and a quicker route to market, plus a re- evaluation of property assets. I would therefore estimate profit after tax of in the region of 1.5 million which would place it on a p/e of circa 13. Still very cheap and should have a lot further to run.

cheers GF.

been topping up yesterday and today,now in excess off 15000 shares.Target is 500p which should be reached when property portfolio is revalued.

BBJL

When will that be?

MS

DOWN, 'they cannot be serious.

cheers GF.